Quoin Pharmaceuticals (QNRX) Registration Filing summary

Company overview and business model

• Clinical-stage specialty pharmaceutical company focused on rare and orphan diseases with no approved treatments, initially targeting rare skin diseases using proprietary and in-licensed drug delivery technologies.

• Lead product QRX003, a topical lotion for Netherton Syndrome (NS), is in late-stage clinical development; pipeline includes QRX004, QRX007, and QRX008 for other rare skin conditions.

• Mission includes completing late-stage clinical testing, preparing for commercialization in the US and Europe, and expanding through partnerships and business development.

• Ongoing clinical studies for QRX003 in the US, UK, Saudi Arabia, Ireland, and planned expansion to other international sites.

Financial performance and metrics

• As of September 30, 2024, cash and short-term investments were $10.3 million; pro forma cash post-offering (if fully subscribed) would be $23.7 million.

• Net proceeds from the offering, assuming full subscription, estimated at $13.4 million after fees and expenses; proceeds decrease proportionally if fewer securities are sold.

• Historical net tangible book value per ADS as of September 30, 2024, was $0.98; post-offering, as adjusted, would be $0.75 per ADS, resulting in immediate dilution of $0.03 per ADS to new investors.

Use of proceeds and capital allocation

• Net proceeds intended for general corporate purposes, including operating expenses, R&D, clinical and pre-clinical testing, working capital, future acquisitions, and capital expenditures.

• Management retains broad discretion over allocation; no specific amounts designated for particular purposes.

• Pending use, proceeds will be invested in short-term, investment-grade, interest-bearing instruments and US government securities.